- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Time Value of Money in Finance
- Subject 2. Fixed Income Instruments and the Time Value of Money

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**CFA Practice Question**

You have $1,000 to invest today. In order for your $1,000 investment to grow to $1,480.25 at the end of 10 years, the money must be invested at what interest rate?

A. 4%

B. 3.5%

C. 3%

**Explanation:**Rate = (1480.25/1000)

^{1/10}- 1 = 4%

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